SIE practice questionmediumUITs
A distinguishing characteristic of a unit investment trust (UIT) compared to a mutual fund is that a UIT:
- AInvests exclusively in real estate
- BContinuously issues and redeems shares at NAV
- CTrades on exchanges like a stock
- DIs not actively managed after its initial portfolio is set✓ Correct answer
Explanation
Why D — Is not actively managed after its initial portfolio is set
UITs have fixed portfolios and are not managed after creation. Mutual funds are actively managed, closed-end funds trade on exchanges, and UITs may hold various securities.
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